I have been getting reports from across the country that the Banks are lobbying for legislation, written by the Banks, to prevent states from bringing civil or criminal actions against banks and servicers bringing wrongful foreclosures. In short, they want to reverse the consent orders and settlements in which they promised to “review” and make sure that the right party was initiating foreclosure and was alleging true facts. All that might be undone if the Banks succeed in this new legislative push.
As pointed out by the article in the above link, the Nevada legislation is disguised as a carrot for homeowners allowing banks to give approval for new loans and refinancing. THAT part of it is obviously subject to whatever underwriting policies are used by the banks — so it is an empty promise.
Check the legislative agenda in your state and see what the banks are doing. Write to your state senator or other elected officials giving your opinion.
The banks and servicers have been revealed as “non-players” that up till recently have been allowed to play. More and more cases are being decided in favor of the borrower and the main reason is standing. Neither the Trust, nor the Trustee nor the servicer can actually prove that they have any interest in the loan nor any authority to represent any party allegedly owning the loan. As the number of wins by borrowers reaches critical mass, the banks are facing huge exposure since they use the mortgage bonds and even the loans themselves as assets on their balance sheets. if it turns out these are not assets, the reports could be fraudulent. More importantly it would indicate that the capital claimed by the bank doesn’t exist, at least in part. Perhaps Elizabeth Warren will get her wish — breaking up Citi and others. But not if this legislation is passed and upheld.
Filed under: foreclosure